~ From the Desk of Rich Rector

Recruiting new agents into your real estate brokerage – do it yourself or hire someone?

How much time should you spend on recruiting agents into your real estate company? In the book, The E-Myth Real Estate Brokerage, I recommend some time commitments. For a brand new company, I say that the broker should spend 35% of his or her time on that task. For an existing brokerage, my recommendations drops to 20%.

In addition, many brokers think they can hire someone else to recruit for them. DON’T! The broker/owner of the company is always the BEST recruiter. It is ok to hire someone who may work in tandem with you, but this must be the owner’s first job priority. I have recently heard a differing opinion of my estimates of time needed to be spent on this. What I heard from a respected real estate consultant was this: Whether a new or existing company, the Broker/Owner should plan on spending 40% of his or her time on agent recruitment.

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5 thoughts on “Recruiting new agents into your real estate brokerage – do it yourself or hire someone?”

I think brokers who provide a great working atmosphere and training for their agents will find that their agents are the best recruiters – at least the source of people the brokers would be interested in recruiting.

I agree that the agents in a company are the best ones to bring the right people into the company. In my experience, those agents attract other agents who have the right ethics and behavior in cooperative transactions. The question I always get from brokers is “Do I need to give my agents a financial incentive to help me recruit?”

We have had some success with this method. The amount of money we have offered to our existing agents has varied, but the amount does not seem to make that much difference in results. We have also parsed the payments out over 3 to 6 months, so we are not rewarding people for just bringing someone in for the money. We also allow our agents to share it or give the entire amount to the new recruit, if they so choose. We also use a system similar to what builders use to “register” their clients, so there is no dispute about who is to receive the reward. On the application the new person fills out when joining, there is a field that says, “Who was responsible for you joining Realty Executives?” It is that person who receives the incentive money.